Financial Times 05 June 2013
Goldman Sachs’s private equity arm will add to its investment in an Indian wind farm company, putting another $135m into ReNew Wind Power, in a sign of the increasing interest in Asian renewables.
The planned investment follows last month’s pledge from Goldman to invest up to $487m in JRE, a solar power generation company in Japan, where guaranteed electricity prices for 20 years is making investment highly attractive.
Industry consultants say private equity venture capital interest in renewable energy is picking up this year, particularly in India and Japan, after it slowed to a crawl in Asia in 2012. Just $153m was invested last year after more than $700m in each of 2010 and 2011, according to data from Preqin, an independent research house.
The slowdown came as the paring back of subsidies in parts of Europe exacerbated the global overcapacity in wind turbine and solar panel production, but investment volumes are expected to pick up again as private equity increasingly turns its attention to power generation instead. In Japan and India, energy production shortages and new feed-in tariffs that guarantee the price paid for renewable electricity are expected to boost investment.
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Goldman Sachs lifts investment in Indian renewable energy
